The news: Target said it does not use shopper data to personalize pricing, making it the latest mass merchant—after Walmart—to distance itself from the controversial tactic.

The retailer said it does not use shoppers’ personal information to raise prices based on customers’ profiles, locations, or when they shop.

How we got here: Like Walmart, Target is attempting to forestall concerns that increased personalization is a means for boosting profits. The retailer took pains to emphasize that it uses data “thoughtfully,” such as by surfacing relevant promotions to shoppers based on their history or offering reminders to stock up on regular purchases. At the same time, Target acknowledged that there are instances when prices can vary due to factors such as local costs, regulations, and competition.

Implications for retail: Target’s decision to publicly address personalized pricing reflects growing scrutiny of the practice. Nearly two-thirds of US adults are somewhat or very concerned about personalized pricing, according to a February Talker Research survey. Those concerns could intensify as rising costs for everyday essentials like gas and groceries make shoppers both more price-sensitive and more likely to scrutinize retailers’ pricing practices.

At the same time, retailers face more regulatory oversight as local, state, and federal authorities clamp down on the use of customer data to tailor pricing to individuals, also known as surveillance pricing. Seattle recently became the first US city to ban the practice, while lawmakers in states including New York, Connecticut, and Virginia have either passed or introduced legislation aimed at curbing the use of personalized pricing. The FTC also introduced a new rule requiring companies to disclose when they use consumers’ personal information to tailor prices.

Retailers that are transparent about their pricing practices and make it clear that they are not charging customers more due to factors such as higher demand, time of day, or previous behavior stand a better chance of maintaining customer loyalty in a difficult environment.